The Oil and Gas activities of the Energy Development Unit Contents
An Introduction to the Oil and Gas activities of the ...... 1 Energy Development Unit
Offshore Environment and Decommissioning Unit...... 2 Consideration of the Environment...... 3 Decommissioning...... 3
Licensing and Regulating the Explorers and Developers...... 4
Maximising UKCS Production PILOT...... 5/6 West of Shetland...... 7 The Petroleum Measurement and Allocation Team...... 8 The Field Teams...... 9 Stewardship and Enhanced Oil Recovery, Heavy Oil...... 10 Production Efficiency - Making it Work...... 11 Licensing and Fallow...... 12
Maximising the Economic Benefits Oil and Gas Industry and Supply Chain Development...... 13 PILOT Share Fair...... 14 PILOT Forward Workplan...... 14 Project Pathfinder...... 15 UK/Norway Cooperation...... 16 Working with the UK Supply Chain – Fabrication Sector...... 17 Commercial Code of Practice...... 18 Infrastructure Code of Practice...... 18 Improved Access to Infrastructure...... 18
Investing in the Future Technology...... 19 Delivering an Industrial Strategy for Oil and Gas...... 20/21 Review of UK Oil and Gas Recovery...... 22
Reference Contacts...... back cover An Introduction to the Oil and Gas activities of the Energy Development Unit (EDU)
One of DECC’s key goals in support of the Government’s growth agenda is to maximise the value of our indigenous oil and gas reserves on our way to a low-carbon future.
DECC’s Energy Development Unit (EDU) is responsible for managing the UK’s onshore and offshore oil and gas reserves. We do this through licensing acreage to operators, encouraging exploration and sanctioning development plans for exploiting reserves. We are also responsible, through a separate team, for the environmental regulation of offshore oil and gas activity on the UKCS, where we work closely with the HSE and the Maritime and Coastguard Agency to ensure safe and clean operations in the seas around our shores. We oversee the decommissioning of offshore installations and pipelines and ensure that operators have in place the necessary financial security. We regulate offshore gas unloading and storage and offshore carbon dioxide storage activities in support of Carbon Capture and Storage. Finally and crucially, we ensure that our oil and gas reserves maximise UK growth by providing support for the UK’s oil and gas supply chain through the PILOT forum. The Office of Unconventional Gas and Oil, recently established within EDU is working across Government to create the right conditions for operators to be able to explore the UK’s unconventional landward resources of gas and oil.
This booklet provides a brief overview of all of our activities in these areas. Besides this work, EDU is also responsible for managing planning decisions for major electricity and gas infrastructure projects, advising on planning policy, the management of the health, pension and other liabilities of the former nationalised coal industry and oversight of the Coal Authority.
Our aim is to maximise the economic production of the UK’s offshore oil and gas resources taking full account of environmental, social and economic objectives. We promote the oil and gas industry throughout the entire life cycle of projects ensuring the best value to UK plc including the continued development of an efficient UK based supply chain through the Supply Chain Code of Practice.
While we recognise that the UKCS is maturing the North Sea still offers significant investment and growth opportunities. Success will, however require innovative thinking and technology. It is important to have the right business climate and regulation in place to achieve our goal of maximising economic recovery and this is why the Secretary of State, Rt Hon Edward Davey MP announced a comprehensive review of UK offshore Oil and Gas production and appointed Sir Ian Wood to lead this work. Sir Ian’s report is expected early in 2014.
Stephen Speed Head of Energy Development Unit
1 2 The Oil and Gas activities of the Energy Development Unit Approval andmonitoring ofdecommissioning programmes. • Legalobligationsandfinancialsecurityfor decommissioning ofoffshore • Oilspillsurveillance andpollutionprevention; • Environmental emergency response planapprovals; • Environmental regulation, includingenvironmental assessments, approvals and • Strategic environmental assessment ofUKcontinental shelfpriorto licensing; • carbon dioxide storage activities. This involves:- and gasexploration andproduction, offshore gasunloading andstorage andoffshore OGED isresponsible for offshore environmental policyissues relating to offshore oil Decommissioning Unit(OGED) Offshore OilandGasEnvironment and installations andpipelines; enforcement; Consideration of the Environment
The Offshore Environment Unit consists of three teams, the Environmental Policy Team, the Environmental Management Team, and the Offshore Environmental Inspectorate Team. The Unit is responsible for regulating the economic exploitation of offshore energy resources to take full account of environmental and social objectives by:
• Consulting with international bodies (e.g. the EU and OSPAR), other Government Departments (e.g. Defra and the devolved administrations) and stakeholders on the development of policy and regulatory initiatives; • Implementing domestic legislation, international agreements and agreed codes of practice to ensure that offshore oil and gas, gas storage and future CCS projects do not have a significant adverse impact on the environment or other users of the sea; • Maintaining an appropriate and up-to-date understanding of the impact of offshore oil and gas, gas storage and CCS developments, and ensuring that this is reflected in the impact assessment process and environmental monitoring programmes; • Inspecting offshore installations to ensure regulatory compliance; • Providing a response to offshore environmental incidents; and • Investigating and enforcing where there is evidence of regulatory non-compliance in line with the Department’s Enforcement Policy.
www.gov.uk/government/policies/providing-regulation-and- licensing-of-energy-industries-and-infrastructure/supporting- pages/environmental-regulation-of-offshore-oil-gas-and-carbon- dioxide-storage-activities
Decommissioning
The Offshore Decommissioning Unit (ODU) ensures that UKCS oil and gas decommissioning is effective and responsible, taking full account of safety, environmental, economic and societal impacts and international requirements. ODU does this by:
• Ensuring that decommissioning liabilities are placed on the right companies; • Monitoring and assessing companies’ ability to meet their decommissioning financial obligations. Where appropriate, covering the risk of default by, seeking financial security from operators to protect the Government and taxpayer from having to cover decommissioning obligations; • Examining and consulting on draft decommissioning programmes; • Making sure approved programmes are implemented; • Representing the UK’s decommissioning interests at OSPAR; and • Developing decommissioning policy and procedures in consultation with stakeholders.
www.gov.uk/oil-and-gas-decommissioning-of-offshore-installations- and-pipelines
3 4 The Oil and Gas activities of the Energy Development Unit The Licensing, Exploration andDevelopment Team: Licensing andRegulatingtheExplorers www.gov.uk/oil-and-gas-fields-and-field-development Maintain • Provide • UsePILOT to provide strategic direction. • Work withtheindustry onupstream emergency plans. • Work withindividualcompanies to maximisethevalue offieldsandprospects. • Promote soundcommercial behaviours andefficientuseofinfrastructure, • Managethelicensing regime, consents for wells, fielddevelopment plans,etc. •
and Developers information andTechnology. potential EUlegislation, machineryofGovernment changes. line activity. input and develop to longer the term regulatory plans for framework, gas storage taking and carbon full account capture of existing and median and Maximising UKCS Production
PILOT
PILOT - the oil and Gas taskforce is a unique partnership between the UK Oil and Gas Industry and Government working in cooperation to deliver quicker, smarter and sustainable energy solutions to secure the long term future of the UKCS.
Vision Maximising the recovery of the UK’s remaining oil and gas reserves is vital to the continued energy security and prosperity of this country. It is estimated that the UK continental shelf could still offer up to 20 billion barrels or more of oil and gas. PILOT, through Industry and government engagement advances initiatives directed at reducing cost, eliminating barriers and maximising the effectiveness of resources to bring about the future which could still see the industry meeting half the country’s oil and gas needs in 2020.
Secretariat Works to ensure the success of initiatives driven from PILOT, which aim to maximise recovery of the nation’s indigenous hydrocarbon reserves, and also improve competitiveness in the Supply Chain. The scope of work incorporates promotion of the UK supply chain capability and facilitating the development of new and emerging technology from concept to deployment. Additionally the unit has responsibility for ensuring the sector has an adequately skilled workforce.
To contact the PILOT Secretariat please email:
Why it works
• There is a common goal to maximise recovery of our indigenous hydrocarbon reserves. • All stakeholders are engaged in the forum. • All members have passion and commitment for the process. • PILOT Membership is valued by companies. • Specific targets and relevant work areas ensure target focussed meetings. • Commitment to drive forward initiatives for the greater good of the basin. • Secretary of State and Ministerial commitment to the process.
5 6 The Oil and Gas activities of the Energy Development Unit These Stimulating • Change, Edward Davey. Supply • Production • PILOT Future Challenges:
Infrastructure • Improving • Technology • Exploration –Lookingatwaysto de-riskexploration andincrease success rates. • outcome from thebasin. responsiveness ofthesupply chain. commercialisation. maintain anddevelop itto meetourfuture needs. technology gaps. efficiently and investments are enabled. EOR technologies. groups/105#contact-details www.gov.uk/government/policy-advisory- objectives to find Chain which Recovery Efficiency mechanisms – Investment To have – Development will To develop - Ensuring been identify ensure – To To identify to find confirmed an – improve that critical looking overarching ways - we the Maintaining revenues are of most cost infrastructure by improving on at Secretary effective effectiveness a Access strategy are trajectory Competitiveness maximised production ways to for of and Capital to State, including to the consider achieve increase of and basin oil Energy issues future of and the the and mechanisms recovery the gas application and best incremental identify and basin resources Climate factors overall over- and key to of Maximising UKCS Production
West of Shetland
The area to the west of the Shetland Islands and the Hebrides is the largest remaining area of significant prospectivity on the UKCS and represents potentially 15 - 17% of the UK’s remaining oil and gas reserves.
The development of new gas transportation infrastructure and the use of existing infrastructure is the key to unlocking this potential. Total E&P UK Ltd, their partner in the Laggan and Tormore fields, DONG Energy, and other partners in the Rosebank field are currently constructing a new gas pipeline (“SIRGE”) that will link the Shetland Islands with St Fergus via the existing Frigg pipeline. Gas transportation was, and is seen as the key to the wider development of the area. The SIRGE system will deliver gas to the market by 2014.
The Laggan and Tormore fields are being developed subsea with production tied-back via a new pipeline system to a new gas processing terminal owned by Total and DONG at Sullom Voe on the Shetland Islands.
A further gas export pipeline is to be built as part of the Chevron operated Rosebank oil field development, and will connect into the SIRGE system. Spare capacity is likely to become available in the future as Rosebank production declines.
7 8 The Oil and Gas activities of the Energy Development Unit Providing •
Inspecting • Liaising • (or Reviewing Licensee’s proposals to ensure thatallnew fielddevelopments • In The Petroleum Measurement andAllocation Team Maximising UKCS Production Developing • The Petroleum Measurement &Allocation Team isresponsible for: revenue to individualfieldsisofdirect fiscal significance. gas 2011/12, (e.g. HMRC,NMO). joint supervisoryactivities); practice’ asdescribedinDECC’s Measurement Guidelines; continental shelf; Memorandum Measurement (PON6); production. www.gov.uk/oil-and-gas-measurement-of-petroleum modifications the with measurement offshore the Treasury Since of overseas UK Understanding to the and regulatory received existing taxation onshore advice Governments regime within £6.53bn regime developments) installations (MoU) DECC for with is in on not the direct the and areas to uniform measurement Government ensure conform with revenue of other across compliance common to from Government
of an of the Norway, oil taxes agreed UKCS, interest with & gas on Departments which ‘good allocation UK Method on (e.g. the oil oilfield covers and the UK of of
Maximising UKCS Production
The Field Teams
There are 3 field teams:
• Southern North Sea & East Irish Sea • Central North Sea • Northern North Sea and West of Shetland
The field teams work to ensure that, once discovered, potentially economic oil and gas fields are brought quickly into development and their value maximised. The teams play a key role in the approval of licensee’s Field Development Plans (FDPs) and applications for Consent to drill wells.
Following FDP approval, the team also work to identify hurdles to incremental activity and to ensure that the economic life of mature fields is maximised and that gas is not wastefully flared.
The teams also have a key role ensuring undeveloped discoveries are not allowed to become fallow, identifying hurdles to beneficial activity and resolving these.
The field teams also conduct an annual review of the UK’s oil and gas reserves, and produce short term and long term production forecasts on a regular basis.
www.gov.uk/oil-and-gas-uk-field-data
For the latest digital UKCS map please see below link – this is updated on a monthly basis www.gov.uk/government/uploads/system/uploads/attachment_data/ file/210689/Infrast_Off.pdf
9 10 The Oil and Gas activities of the Energy Development Unit • • • field reliability. • It DECC Stewardship andEnhanced OilRecovery Maximising UKCS Production The Heavy Oil other to Stewardship viscosity) Energy’s (e.g. add upto 1billionboeto theUK’s proven reserves. Mariner in projects Staff Several Stewardship There is look bringing polymer of over thenext few years. announced this application ofincreased investment andfocus. from highlight on theproduction efficiencyoftheirassets. phase on analysing also create opportunitiesfor CO2 EOR. salinity important UK the heavy this recognises infrastructure at has type in “Ultra from heavy Bentley) within that individual type is of quadrant waterflood. forward North oil several injection to process growing the the the is DECC to anywhere fields oil by Heavy be the as has current development build the potential are the Sea field initiated yet producing billion these basin use 9 in has to been importance pilot interest Oil expected PM of on undeveloped. BP Operators the was achieve the in absence the established Field this in project have technically barrels that same successful the offshore of approved Stewardship Aberdeen Northern experience assets in each of Allowance” world some committed to this. area chemical the of are of in of be maximising individual anywhere their offshore The “heavy and and With Clair a submitted considering (Statoil’s challenging assets in in North close in adoption early has several raising process and October Captain the announced oil to EOR, oil” dialogue Sea. using can CO2 resulted focus field recent producing in Bressay 2013. potential (oil in particularly the projects awareness to perform field, A 2011. supply development CO2 of West 2013. low with on Field engage world. Carbon high Field between in in exploration salinity field, injection only And a increased of 2009), from Together, asset. and are Development oil higher development substantially Shetland, Approval with the of Enquest’s Chevron prices Capture polymer expected the existing Government water there the projects, There second EOR a than need targets development number these and benefits flood of is the and are opportunities, usual injection brown is to Kraken for Plan growing this fiscal offshore better plans reach clear in first projects carrying Storage and in collaboration of and particular project density of for the fields. Operators incentives project improved and for evidence sanction critically with Industry and Statoil’s drilling. interest second project could could three out Xcite was and The low but the of a 4
Maximising UKCS Production
Production Efficiency - Making it Work
Once a field is developed, it is in the interest of all stakeholders that its oil and gas resources are produced efficiently - by minimising downtime and maximising flow rates.
Production Efficiency (PE) is the metric used by the Department to assess the efficiency of all UKCS production operations on a common basis. This metric is a simple ratio which compares actual production against the maximum production potential of a system, constrained only by technical and market limits. Depending on factors such as the complexity of a producing system, a PE in the range of 80% to 95% is considered to represent “good” performance.
It is of concern that PE across the UKCS has declined from 80% to around 60%, and that this deterioration has been particularly pronounced over the past 2-3 years. It is estimated that the reduction in PE vis-a-vis previously attained levels currently accounts for almost 0.5 million boe/d of lost production, approximately one third of actual production.
In response to this situation, a UKCS PE target of 80% by 2016 was set by the Department and leading Operators at the PILOT forum in May 2013. To support delivery of this target, a Production Efficiency Task Force (PETF) has been established to share insights on root-causes, consider good practice, and promote collaborative approaches. Production Efficiency improvement themes will be identified to focus the work of the PETF. Individual Operators have committed to prepare asset-specific improvement targets and plans, and make budgetary provisions for implementation.
Overall progress and, where necessary, further interventions will be considered at the bi-annual PILOT forum.
11 12 The Oil and Gas activities of the Energy Development Unit The offshore round in2014. received tranche continues In fewer Fallow assets remaining. discoveries Government Licensing andFallow Maximising UKCS Production
Licensing to attract thenecessary exploration andinvestment inUKCS. limited work pressure for activityorrelinquishment priorto theproposed 28thRound. view Fallow with in of www.gov.uk/oil-and-gas-fallow-blocks-and-discoveries of the scope. the the has to 167 process developed, highest is attract time industry continued licence committed The and continues global number full to awards effort however realise fallow to to investment. ensure involved of maximising to were
review applications as economic deliver a that made result in process the results In momentum the last potential. 2012, of 27th (244) the UK’s will Autumn. in Round, the terms success since be oil DECC’s most is reinstated and licensing the maintained of DECC of numbers recent gas Fallow
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Maximising the Economic Benefits
Oil and Gas Industry and Supply Chain Development
The Industry Development team supports the Supply Chain serving the Oil and Gas Industry in the UK and abroad by encouraging growth and improving prosperity through greater competitiveness. We do this by encouraging: • Progressive business practices • The UK ‘s contribution to developments • Strategic and innovative technology developments • Internationalisation of UK Supply Chain companies • Skills development
The team also works to ensure the success of initiatives and work areas from PILOT which aims to maximise recovery of the nation’s indigenous hydrocarbon reserves.
We maintain on-going engagement with the Supply Chain through our relationships with representative organisations at both a Sectoral and Regional level. The aim is to ensure a fully representative view is presented to Government through Trade Association meetings. Members include:
• Oil & Gas UK • Subsea UK and Subsea NE • Offshore Contractors Association • East of England Energy Group • NOF Energy • Energy North • Decom North Sea • Energy Industries Council
We work to promote the Supply Chain Code of Practice, which asks companies to agree to adopt and implement best practice guidelines for the UKCS, aiming to improve the way business is conducted. The code aims to; improve performance, eliminate unnecessary costs, and add value and boost competitiveness. The code was re-launched in January with important changes made to the criteria of compliance to encourage better application of the code across the Supply Chain. The signatories work towards full compliance and comprise of major purchasers (Operators and principal Contractors) and suppliers.
We are currently working alongside Decom North Sea to develop the Decommissioning Supply Chain, to ensure it is able to take advantage of the future potential opportunities which will arise.
We also work with UK Operators to maximise opportunities and value creation for the UK Supply Chain and have an on-going dialogue with Industry to understand the changing market. To this end we have developed an initiative - Project Pathfinder to show current and future developments in the UKCS and provide information to the Supply Chain.
13 14 The Oil and Gas activities of the Energy Development Unit the FPAL website. details business organised The PILOT Share Fair Maximising theEconomic Benefits The Workplan, DECC, inpartnership withFPAL andOil&GasUKcreated thePILOT Forward PILOT Forward Workplan Code ofPractice, andiscriteria for achieving ‘Gold’status. the For more information please seetheOil&GasUK: PILOT Share Fair web page • • • • • This event provides delegates withtheopportunityto: Sea. The last year. major Supportandlearn more abouttheSupply Chain CodeofPractice Network withhundreds ofindustry colleagues Take partinone-to-one discussions withpotential clients Findoutkey pointsofcontact Learnhow to dobusiness withcompanies active intheUKCS Supply initiative PILOT PILOT oil from SupplyChainCodeofPractice.cfm www.oilandgasuk.co.uk/knowledgecentre/ www.achilles.com/en/find-your-achilles-community?id=409 www.oilandgasuk.co.uk/PILOT_Share_Fair_2012.cfm
and opportunities by Chain to Share Share around is Oil gas provide part & and Fair players Fair Gas of 30 continues current the provides is key UK to the unveil ‘tiered the UKCS and annual on-line Supply to the held their compliance Contractors grow latest each flagship 18 Chain. information with months UK November. a system’ The record oil and event and forward PILOT Operators. highlighting for breaking for gas The Bronze the the Forward plans
business PILOT Supply Supply The 1000+ for potential Share database Workplan projects Chain opportunities Chain. delegates Silver Fair PILOT fo rw
contracts The ar in is is now d workplan hosted the central attending event Gold covers where North and on to is
Maximising the Economic Benefits
Project Pathfinder - Project providing the Supply Chain Pathfinder with visibility of future projects
Project Pathfinder is an initiative set up to assist the Supply Chain pin point and target emerging developments. It provides a real-time look at the oil and gas projects for both new field developments and decommissioning of redundant facilities in the UKCS over the next few years. Currently there are over 50 live projects and the medium term is exceptionally buoyant.
DECC listened to the Supply Chain and concluded that early information on emerging projects would be helpful to enable them to plan ahead. Project Pathfinder provides high level details of the development and timings of the opportunities as well as contact details within the companies. It has been developed to provide increased visibility to the contracting community and to build on the information available from existing forums such as the PILOT Share Fair and the PILOT Forward Workplan.
Industry actively supports this initiative and now directly updates information on their projects via the DECC Oil and Gas Portal, providing a more responsive service.
This work has also been endorsed by influential industry bodies including Oil and Gas UK, and is regularly visited by a wide spectrum of Supply Chain companies.
Click on the below link to view Project Pathfinder
www.gov.uk/oil-and-gas-project-pathfinder
15 16 The Oil and Gas activities of the Energy Development Unit with development. fields our • • Notable benefitsfrom theco-operation include: of new cross-border fieldsbeingdeveloped andhasfacilitated new pipelineconnections. The UK/Norway Cooperation Maximising theEconomic Benefits • The from • New JointFramework Treaty inplace. New UK/Norway to projects. gas of Petroleum &Energy. connecting theNorwegian Tampen area to StFergus viatheFLAGS pipeline. work INTSOK companies Mentoring environmental [email protected] Contact Rebecca Barryat close UK our all clarify and from and guidance Norwegian with aspects Norwegian cooperation pipelines. – regulatory Norway Norwegian We programme Ormen Norway on Cross-border share on of both and gas The trans-boundary counterparts, the share Lange to has regulatory requirements, common sides supplies Framework Oil promote North will created a & at of common be Gas Business the Sea. Easington concerns delivered launched regimes reciprocal the Partners sharing North development agreements simplify For
to register your interest intheprogramme. necessary interest to remain many about to soon. Sea. and experience in Business opportunities the the conjunction in We This safety the UK, years exemplars have published guidelines approval maximising jointly with Tampen is and resulted Mentoring part we and the champion for process with the have of jointly for knowledge to Langeled our link oil the environment develop the in the been and on-going by a - benefit and international and Norwegian significant both 5th this gas working pipeline trans-boundary to Gjoa on round Governments initiative expedite to supply cooperation oil and be pipelines,
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Maximising the Economic Benefits
Working with the UK Supply Chain - Fabrication Sector
A key objective of the Industry Development team is to promote economic value to UK business from the entire life cycle of UKCS projects. There is currently a focus on the UK fabrication sector as it has the potential to create and support large numbers of jobs, generally in challenged areas of the country. We aim to highlight the capacity and capability to the Operators with major new projects and developments coming forward. In addition we proactively encourage Operators to afford competent UK fabricators the opportunity to bid for new contracts. This work has recently been reinforced by the creation of the Offshore Industry Group which will be led by former Energy Minister Charles Hendry with the remit of promoting UK content.
Charles Hendry said ‘it is important these companies are given a fair opportunity to bid for the work, so we can build upon the skills and expertise we have developed over the past four decades in this sector, I hope we can continue this success where there is UK capability and capacity for fabrication.’
Historically the UK Fabrication sector developed an impressive capability, and one which is mirrored in our indigenous expertise in Front End Engineering and Design. During the decade 2000-2009 there was considerably retrenchment and a number of yards were mothballed, however following the recent renaissance in investment levels we have seen yards resurrected and undertaking significant projects supporting thousands of skilled jobs. © Derek Gordon dgordonphotography Including:
• Gaz de France - Cygnus project being built at Heerema, Hartlepool and Bi fab, Methil Fife • Premier Oil – Solan jacket and topside being built at Bi Fab Methil Fife • Bluewater – Haewene Brim FPSO being refurbished at the Global Nigg yard in the Cromarty Firth. • Talisman – Monarb jacket being built at OGN on Tyneside • ConocoPhillips – Britannia Module being fabricated by Wilton Engineering Services at Teesside • Nexen – Golden Eagle accommodation module being built at SLP Lowestoft
17 18 The Oil and Gas activities of the Energy Development Unit can Task framework further. thereby and All collaboration www.gov.uk/oil-and-gas-codes-of-practice The Commercial CodeofPractice Maximising theEconomic Benefit www.gov.uk/oil-and-gas-infrastructure In Improved Access to Infrastructure The Infrastructure CodeofPractice standard commercial disputes. transactions holding is users is 2011 is norealistic prospect ofagreement beingreached. not supported 2012 infrastructure Code be supporting Forces Commercial to invite likely allow encourage developed licence the forms of to the in are PILOT Practice concerning the by between promote a interests Secretary of being a reasonable Secretary positive owners agreement Champion investment while Code Infrastructure on established Operators, positive UKCS on Access the have of of commercial of the State time Practice relevant State will for both signed assets, UKCS negotiations to each be as frame. to Access to in Upstream to step put used a producing up step have infrastructure minimising (CCoP) way company behaviour. these to This into Group wherever in of the agreed on on negotiations maximising Oil has proposals has Code. his fields shared proposed who & costs been to This own
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Investing in the Future
Technology
As the basin matures and recovery of the remaining reserves becomes increasingly challenging the development and deployment of new technologies and innovative solutions is a key enabler to achieving the production goals of PILOT.
We work to facilitate the development of new and emerging technology from concept to deployment:
• Working collaboratively with the Technology Strategy Board on Research and Development;
• Working closely with the Industry Technology Facilitator to foster innovation and facilitate the development and implementation of new technologies into the market;
• A PILOT workgroup has been set up to develop a technology strategy for the UKCS. It is expected this will be completed by the end of the year.
Contact:
19 20 The Oil and Gas activities of the Energy Development Unit BIS Developed launch theGovernment’s OilandGasstrategy inAberdeen. Earlier Delivering anIndustrial Strategy for OilandGas Investing intheFuture by The increasingly challenging production environment. confidence, It to Industry • • Highlights from thestrategy include: regular intervals. The • • Developing Encouraging Maintaining afiscal regime thatencourages investment and innovation intheUKCS Working will drive setting costs, improve efficiencyandenhance production. which oil andgasindustry, especially for SmallandMediumEnterprises (SMEs). the £27billionofrevenues whichthey already generate intheUK. and strategy strategy further this each Michael and will out in year safeguard to set fosters will of strengthen enable partnership fill a the out these three more clear Moore help the UK 40 strong skills industry jobs Secretaries Supply forward. path technological to action from the focus and gap. and with to the oilfield points Chain help to exploit Progress efforts meaningful This industry, better Scotland of to further and State, advancement services is maximise the on seen understand allocated will UK’s addressing Office, the Edward collaboration so as be sector that recovery strategy one remaining
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The Rt Hon Edward Davey MP, Secretary of State for Energy and Climate Change said: “As we move to a low carbon economy, oil and gas will remain a vital part of the UK’s energy mix for decades to come – providing energy security, jobs and investment.
“I want to pay tribute to the oil and gas industry. Operating in some of the toughest conditions anywhere in the world it spearheads revolutionary technology in offshore exploration and production.
“Alongside the many opportunities which the North Sea offers, there are of course challenges too. I believe that the joint work by Government and industry, through PILOT and the recently launched Industrial Strategy, will pay real dividends and ensure continuing investment and success.”
www.gov.uk/government/uploads/system/uploads/attachment_data/ file/175480/bis-13-748-uk-oil-and-gas-industrial-strategy.pdf
21 22 The Oil and Gas activities of the Energy Development Unit While of oilandgasfrom theUKContinental Shelf. Wood ahead. are Secretary Review ofUKOilandGasRecovery Investing intheFuture expected inearly 2014. to Sir unprecedented challenges thatrequire new thinkingandapproaches. Sir UKCS, andisuniversally respected intheindustry. produce and maximisingtheuseofkey technologies.” lines including its energy “The Sir IanWood said: Ian Ian strong, Group, investment potential will brings Sir of UK’s of supply inquiry work his Ian it optimising State to is huge oil recommendations will conduct one is with and is and that reached. Edward publish experience of rising Industry, technology will the gas use a review and most make Davey of Industry I emerging will and Government near-term to mature into a development has extending consult that the real how is invited review will conclusions difference a offshore the prospects key with shape and life UK following Sir component and others Government of can Ian basins to infrastructure, the
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Investing in the Future
The Office of Unconventional Gas and Oil (OUGO)
The Office of Unconventional Gas and Oil (OUGO) was established in March 2013 to co- ordinate work on unconventional gas and oil across other parts of Government with an interest or responsibility in this area. A summary of its objectives are:
Making the most of our natural resources
• Making the best use of our natural resources, encouraging the development in a way that maximises the benefits to the economy while supporting the transition to a low carbon economy at the least cost.
• Work with HMT and the taxation system to support the growth of these industries.
Enabling development, protecting the environment and safeguarding the public
• Ensure regulation of the Industry is as streamlined and simplified as possible while remaining sufficiently robust to safeguard the public, the workforce, and the environment.
• Ensure Government has the right policies in place to ensure safe decommissioning of sites and high quality restoration of the land, without increasing burden to the public purse.
Making sure local communities benefit from development in their area
• Ensure the delivery of a coherent framework for the delivery of local community benefits.
Supporting public engagement
• Helping people understand the facts about unconventional gas and oil. • Support local authorities to engage with their communities.
Building our knowledge base
• Support the provision of comprehensive, timely and accurate information on unconventional gas and oil recovery. • Liaise with European and International bodies so we can learn from experiences elsewhere.
Contact:
23 24 The Oil and Gas activities of the Energy Development Unit Notes designed by foyer graphics Email: [email protected] Telephone: 03000604000 SW1A 2AW London 3 Whitehall Place Department ofEnergy andClimate Change Energy Development Unit DECC –LondonHeadQuarters Telephone: 01224254000 AB11 6AR Aberdeen 86-88 GuildStreet Atholl House Department ofEnergy andClimate Change Energy Development Unit DECC –Aberdeen Office URN:13D/184 © Crown copyright 2013 department-of-energy-climate-change www.gov.uk/government/organisations/ UK Government Website DECCPage: pages DECC OilandGasweb code to gostraight to the reader appandusethis download afree QR On your smartphone